The GEM report, which tracks the advancements in the steel
industry, highlights a striking contrast in the global shift towards greener
production methods and India's ongoing projects.
New Delhi: India has now outpaced China to become the world's foremost
developer of steel, boasting a pipeline capacity of 258 million tonne per annum
(mtpa), according to the latest report by Global Energy Monitor (GEM). This
significant development comes with its set of challenges, primarily the
country’s continued reliance on coal-powered technologies.
The GEM report, which tracks the advancements in the steel industry, highlights
a striking contrast in the global shift towards greener production methods and
India's ongoing projects. Despite a global trend where 93 per cent of new
steelmaking capacity uses the lower-emissions electric arc furnace (EAF)
technology, India remains a major developer of basic oxygen furnace (BOF)-based
steel, which is heavily dependent on coal.
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Of the total steel capacity currently under development in
India, 177 mtpa is being developed using BOF technology. The report also points
out that a considerable 84 per cent of India's planned steel capacity has not
yet proceeded to the construction phase, presenting an opportunity for the
country to reconsider and possibly redirect these projects towards more
environmentally friendly methods.
Marie Armbruster, a project manager at Global Energy Monitor, emphasized
India’s critical role in the future of steel production and its impact on
global emissions. "India's sheer volume of steel production has huge
potential to push the emissions of the global steel industry towards net zero
production," she said. Armbruster urged India to pivot from coal and adopt
green hydrogen technology for its direct reduced iron (DRI) capacity, which
would align its production processes with global net-zero goals.
The report reflects on the broader global context,
noting that while the adoption of cleaner EAF technology is on the rise, the implementation
remains slow, with ongoing new projects still favoring coal-based methods.
Nearly 46 per cent of all new steelmaking construction globally uses
coal-powered technology, marking a significant area of concern for
environmentalists.
As India positions itself as a leader in steel production, the GEM report calls
for a strategic reassessment of production technologies to meet environmental
targets and reduce the overall carbon footprint of the industry. This
transition, according to experts, is not just crucial for sustainability but is
also essential for maintaining competitiveness in the increasingly
eco-conscious global market.